France received good news yesterday, two days before the euro is to be launched in Brussels. For the first time in three years, the country's jobless rate has fallen below the symbolic figure of three million, to 2,989,800 unemployed.
The statistics released by the Ministry of Employment and Solidarity show that unemployment dropped 1.2 per cent in the past month, and 3.2 per cent in a year. Although the figure remains high at 12 per cent of the population - compared to 12.8 per cent a year ago - the decrease is a political victory for the 11-month-old Jospin government, which made employment its top priority.
The right-wing opposition credits improvements worldwide for the turnaround in the French economy. But Mrs Martine Aubry, the French Employment Minister, said after the weekly cabinet meeting: "Last year, France had a growth rate lower than its principal competitors. Today we are ahead. And up until the last six months, unemployment was still rising here, while it decreased among our neighbours."
From February to March, the French jobless rate fell most among young people under the age of 25, with a 2.2 per cent decline. But commentators said the most significant figure was the 1.4 per cent decrease among long-term unemployed - those who have been without work for over one year. They represent 38 per cent of France's jobless.
The Economics Minister, Mr Dominique Strauss-Kahn, predicts France will create 200,000 more new jobs this year, and the same number in 1999. Some economists foresee as many as 400,000 new jobs this year.
The two most important steps taken by the left-wing government to fight unemployment are the creation of 150,000 public sector "youth jobs" by the end of this year and the legal reduction of the working week from 39 to 35 hours. Economists say rising consumption, rather than these measures, has been most effective in fuelling economic recovery and denting unemployment.
In mid-April, Mrs Aubry presented France's 51-page "National Action Programme" on unemployment which will be evaluated along with plans from all 15 EU member states at the June 15th16th European Council in Cardiff. The official French strategy is to strengthen growth, derive the maximum number of jobs from it and spread the benefits equally. Last November's Luxembourg Summit called for a "new start" for long-term unemployed. For those unemployed more than one year, and for young people registered six months or more with the unemployment agency, France promises either a job offer, an internship or training.
A front-page article in Le Monde notes that the US no longer regards France as stricken by "malaise". The French newspaper cites recent titles in the Wall Street Journal - "Au Revoir Malaise" and "Europe is Back" - as evidence that European integration and the euro have rejuvenated the Old World.
